Being self-employed can be fulfilling and inspiring because you are working hard to build your dreams. As author Oliver Markus Malloy said humorously, “Being self-employed means you work 12 hours a day for yourself so you don’t have to work 8 hours a day for someone else.” However, the fruits of your labors don’t come tax-free. Self-employed taxes need to be considered and treated carefully so they don’t interfere with the pursuit of your dreams. What Does it Mean…
Let’s talk about financial ratios, (and no, this isn’t a dreaded math lesson where you crawl into a corner and hide). The key here is data—data that will help you run your business more effectively, guiding your planning and measuring what is working. The use of data takes effort, but it is worth it as Arthur C. Nielsen, market researcher and founder of the AC Nielsen company said, “The price of light is less than the cost of darkness.” And…
The term cash conversion cycle describes how long it takes a business (in number of days) to convert its inventory and other resources into cash flow resulting from sales. Although some organizations also refer to it as the cash cycle or net operating cycle, all mean the same thing. The purpose of a cash conversion cycle is to determine the length of time each dollar invested in production remains tied up to cover production costs before the inventory returns a…
With the multiple payroll tax obligations you have as an employer, it can be difficult to understand what the Internal Revenue Service (IRS) expects of you. This is especially true when it comes to withholding and paying FICA and FUTA taxes. Many employers find these tax obligations more challenging to understand than basic federal and state income tax withholding. We provide a description of each tax type below along with more of what you need to know to ensure that…
Launching a new business can be both exciting and challenging. Your vision of the business is what energizes you, and that’s important. As Tony Hsieh, CEO of Zappos said, “Chase the vision, not the money; the money will end up following you.” That said, you can’t casually address the financial aspects of the business. Specifically, pay close attention to your start-up expenses and how they are treated relative to taxes. What Are Start-up Expenses and Why Are They Important?…
It can be challenging to get away on vacation when you own a business or you’re self-employed. That’s one reason why you may jump at the chance to travel when the trip offers both business and personal pursuits. If you plan to claim tax deductions for travel, it’s important to understand what does and doesn’t qualify as a legitimate write-off under Internal Revenue Service (IRS) law. Is the Trip Primarily for Business or Pleasure? If you’re planning a combination…
Business is ultimately about money. Said Idowu Koyenikan, author and international consultant, “Money is always eager and ready to work for anyone who is ready to employ it.” As a smart small business owner, you want to use your scarce capital wisely to grow your business. Alfred Marshall, British Economist, said aptly, “Capital is that part of wealth which is devoted to obtaining further wealth.” So, when you approach major financing decisions, what’s your pick, capital vs operating lease? …
Like most small business owners, the time will eventually come when you need to consider outsourced accounting services. While it can be challenging at first to give up some of your control, it can also bring a great sense of relief. When you choose to outsource accounting services, it frees up your time to focus on expanding both your business and your profit margin. We highlight eight other benefits you can expect from outsourcing. You Get Access to the…
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